673.377 - Minimum required available cash, deposits and securities; making and purchasing loans prohibited when minimum not met.
673.377 Minimum required available cash, deposits and securities; making and purchasing loans prohibited when minimum not met.
1. Every association shall have on hand at all times in available money, deposits in banks and credit unions, United States Government bonds, certificates of insured savings and loan associations, Federal Home Loan Bank evidences of indebtedness, time certificates of insured federal and state banks, time certificates of insured credit unions or any indebtedness of any United States Government instrumentality which is by statute fully guaranteed, a sum not less than 5 percent of the aggregate of savings accounts and investment certificates to enable it to pay withdrawals in excess of receipts and to meet accruing expenses. The Commissioner may prescribe from time to time different amounts required for liquidity purposes, but the amounts must not be less than 4 percent or more than 8 percent.
2. A deposit in a bank, credit union or association under the control or the possession of appropriate supervisory authority must not be considered as cash. Except for deposits in a Federal Home Loan Bank, a time deposit established hereafter, whether or not time deposit-open account or deposit evidenced by a certificate of deposit, must not be considered as cash for such purposes unless:
(a) The member itself made the deposit in question;
(b) The deposit, together with all other time deposits of the association in the same bank or credit union, does not exceed the greater of:
(1) One-quarter of 1 percent of the total deposits of the bank or credit union as of the last published statement of condition of the bank or credit union; or
(2) Fifteen thousand dollars; and
(c) No consideration was received from a third party in connection with the making of the deposit.
3. An association must not make or purchase any loan, other than advances on the sole security of its savings accounts, at any time when its liquidity drops below the required level. For the purpose of this section, a loan is deemed to have been made as of the date the borrower executed the security instrument, and a loan is deemed to have been purchased as of the date of the payment therefor.
(Added to NRS by 1957, 762; A 1967, 1019; 1977, 498; 1983, 1791; 1985, 2250; 1987, 1974; 1999, 1450)